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On July 15, Eastern Time, Federal Reserve Chairman Powell once again took a dovish stance in his public speech, boosting market expectations for a rate cut. Combined with the rise of Trump-related stocks, U.S. stocks rose across the board that day, with the Dow Jones Industrial Average setting a record closing high.

The election situation is optimistic, and "Trump concept stocks" are soaring. Trump Media Technology Group (DJT) soared by more than 31% on the day, and another "Vance concept stock" Rumble also soared by nearly 21%.

Apple rose another 1.7% to a record high after being named a top pick by Morgan Stanley.

Fed Chairman Powell publicly voices dovish sentiment again

On July 15, Eastern Time, Federal Reserve Chairman Powell said at a public event that the second quarter economic data made policymakers more confident that inflation could continue to move toward the 2% target. He also said that if the Fed waited until inflation reached 2% before cutting interest rates, it would be too long.

He also said that the (US) economy has performed well in the past few years, and economic growth is expected to slow this year, and inflation will continue to make progress. Powell emphasized that although the policy is restrictive, it is not overly tight, and the neutral interest rate may have risen; when the Fed is confident about inflation, it is time to act.

Powell also said that he was very happy to serve as Chairman of the Federal Reserve and would remain in office until May 2026.

Another Fed official, Goolsbee, said that a rate cut would be guaranteed soon. Goolsbee said that last week's mild June inflation data made him more confident that price pressures were easing, thus supporting a rate cut. He was worried that keeping interest rates unchanged would lead to an overly strict policy stance, because for every month that inflation falls, inflation-adjusted short-term interest rates will rise.

The market is pricing in an increased chance of a Fed rate cut as early as September, but Eric Sterner, chief investment officer at Apollo Wealth Management, said, “It would probably be about a hard landing, where we could see higher unemployment, lower consumer spending, more layoffs, and potentially a bear market, meaning earnings and a recession.”

Sterner added, “Nevertheless, my base case is for a soft landing as both small and large companies are optimistic about their earnings outlook for this year and next, with all 11 sectors of the S&P 500 likely to report positive earnings growth in the fourth quarter, something that has not happened so far in 2021.”

The three major U.S. stock indexes rose

Dow hits new high

On July 15, Eastern Time, Powell's dovish remarks boosted U.S. stocks, and the three major U.S. indexes closed higher.

As of the close, the Dow Jones Industrial Average rose 0.53% to 40,211.72 points, setting a new all-time closing high; the S&P 500 rose 0.28% to 5,631.22 points; and the Nasdaq rose 0.4% to 18,472.57 points.

In terms of individual stocks, Wall Street giant Goldman Sachs' second-quarter profits increased by 150% year-on-year. Goldman Sachs closed up 2.57% on the day, setting a new historical high and leading the Dow Jones Industrial Average.

“Trump concept stocks” soared

According to CCTV News, on July 15 local time, at the Republican National Convention in Milwaukee, Wisconsin, a Republican representative announced that Trump will participate in this year's US presidential election as the Republican presidential candidate.

Subsequently, at the Republican National Convention, former US President Trump obtained enough Republican delegate votes and was officially nominated as the party’s presidential candidate for the 2024 general election.

In addition, former US President Trump announced at the Republican National Convention in Milwaukee, Wisconsin that Ohio Senator James David Vance (J.D. Vance) will run as his vice presidential candidate in the 2024 presidential election.

James David Vance was born on August 2, 1984 in Middletown, Ohio. He served in the U.S. Marine Corps, is a writer and venture capitalist, and was elected as a Republican U.S. Senator in 2022.

The election situation affected the US stock market. On that day, Trump Media Technology Group (DJT) surged by more than 31%. However, the stock fell nearly 10% after the market closed.

Another "Vance concept stock" - Rumble, which was once invested in by the Vance Fund, also rose nearly 21%.

Apple hits new all-time high

On July 15, Eastern Time, Apple rose another 1.7%, with a market value of $3.59 trillion, a record high. Previously, the technology giant was listed as a top pick by Morgan Stanley.

Apple was previously listed as a top pick by Morgan Stanley, citing the company's upcoming artificial intelligence (AI) platform, Apple Intelligence, as being expected to significantly boost hardware sales.

(Compiled by Ivan)

Editor: Joey

Reviewer: Chen Siyang

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